Coinbase To Profit $8 Billion Following Hedge Fund Investment?
A hedge fund in the UK named Tiger Global which primarily invests in global consumer brands and is apparently considering a half a billion investment in Coinbase. This would boost the startup's valuation to almost $8 billion and build up the image of the legitimacy of the crypto markets.
In the summer of 2017, Coinbase was worth around $1.5 billion. The valuation came before a spike in consumer interest in digital currencies at the end of the year. Since then, business has gone down due to a slump in the price of digital currencies. Among others, Brian Armstrong, the CEO of Coinbase has noted they donât need to focus on the short-term trading volume as much as opening the financial system up for everyone around the globe.
Coinbase has claimed that it is profitable and in a report, they say that they have been negotiating with traders for most of the year concerning a secondary stock sale to allow them to cash out without forcing the business to raise more funds. The business did tell people to stop soliciting shareholders however, no agreement was ever reached. The company didnât answer any questions related to the topic either.
This year, Coinbase apparently attempted to make itself value at around $8 billion which is its biggest to date and is apparently said to have been scaling for a possible IPO.
The digital currency mammoth lost David Marcus of Facebook over the summer and so it has recently named Charles Schwabâs Chris Dodd to its board. Coinbase also took on the senior executive and head of analytics and data science at the social giant, Linkedin named Michael li to be their new vice president of data.
What are your thoughts? Let us know what you think down in the comments down below!